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Massachusetts’ stock banks have continued to see positive earnings during the pandemic, with the third quarter giving at least one local bank the best quarter in its history.
Mortgage activity helped drive Brockton-based HarborOne Bank to net income of $11.9 million, or $0.22 per basic and diluted share, ing the third quarter of 2020, compared to $10.6 million, or $0.19 per basic and diluted share, in the second quarter and $7.1 million, or $0.13 per basic and diluted share, in the third quarter last year.
For the nine months ended Sept. 30, net income was $27.2 million, or $0.50 per basic and diluted share, compared to $14.0 million, or $0.25 per basic and diluted share, for the first nine months of 2019.
“We’re extremely proud to announce the best quarterly financial performance in our history,” James Blake, HarborOne’s CEO, said in a statement. “The responsiveness and extraordinary commitment of the entire team to remain ‘open for business’ despite the extreme challenges is something we’re particularly proud of. The outstanding performance of HarborOne Mortgage, continued commercial loan growth, and expanded margins are a result of that commitment.”
Mortgage activity was reflected in HarborOne’s third quarter noninterest income, which increased by $5.9 million, or 15.1 percent, to $44.5 million compared to the second quarter and by $27.2 million, or 157.4 percent, compared to the third quarter of 2019.
HarborOne said low rates spurred record-breaking mortgage demand, leading to higher than usual mortgage origination activity and other mortgage banking income for HarborOne Mortgage. With $789.1 million in mortgage loan closings in the third quarter, HarborOne had a gain on loan sales of $34.1 million compared to $30.9 million for the preceding quarter.
HarborOne, which has total assets of $4.43 billion, is expecting strong activity to continue into the fourth quarter, noting that through Sept. 30 it had a locked residential mortgage pipeline of $623.6 million.
“However, seasonality, economic uncertainty and increased unemployment rates may have a negative impact on mortgage loan originations in the future,” HarborOne added.
Randolph-based Envision Bank also saw mortgage activity drive third quarter earnings. The bank had net income of $10.3 million, or $2.01 per basic and diluted share, in the third quarter compared to net income of $1.1 million, or $0.21 per basic and diluted share, in the third quarter of 2019.
Envision Bank had net income for the nine months ended Sept. 30 of $14.7 million, or $2.86 per basic and diluted share, compared to net income of $2.6 million, or $0.48 per basic and diluted share, for the first nine months of 2019.
The bank has $723 million in total assets.
“The third quarter was another strong quarter in earnings for our company,” William Parent, Envision Bank’s president and CEO, said in a statement. “We are very pleased with our performance, especially our mortgage banking operations, which maintained high levels of loans closed, loans sold, and net revenue from loan sales and origination activity.”
Envision Bank’s third quarter noninterest income increased $13.6 million, or 215.3 percent, to $19.9 million compared to $6.3 million in the third quarter of 2019. The bank said it had an increase of $12.3 million in the net gain on loan origination and sale activities, with sold mortgage loans reaching a volume of $410.4 million in the third quarter.
